Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia

Transcription

1 ESMAP TECHNICAL PAPER 076 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia December 2005 Papers in the ESMAP Technical Series are discussion documents, not final project reports. They are subject to the same copyrights as other ESMAP publications.

2 ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (ESMAP) PURPOSE The Energy Sector Management Assistance Program (ESMAP) is a global technical assistance partnership administered by the World Bank and sponsored by bi-lateral official donors, since ESMAP s mission is to promote the role of energy in poverty reduction and economic growth in an environmentally responsible manner. Its work applies to low-income, emerging, and transition economies and contributes to the achievement of internationally agreed development goals. ESMAP interventions are knowledge products including free technical assistance, specific studies, advisory services, pilot projects, knowledge generation and dissemination, trainings, workshops and seminars, conferences and roundtables, and publications. ESMAP work is focused on four key thematic programs: energy security, renewable energy, energy-poverty and market efficiency and governance. GOVERNANCE AND OPERATIONS ESMAP is governed by a Consultative Group (the ESMAP CG) composed of representatives of the World Bank, other donors, and development experts from regions which benefit from ESMAP s assistance. The ESMAP CG is chaired by a World Bank Vice President, and advised by a Technical Advisory Group (TAG) of independent energy experts that reviews the Programme s strategic agenda, its work plan, and its achievements. ESMAP relies on a cadre of engineers, energy planners, and economists from the World Bank, and from the energy and development community at large, to conduct its activities. FUNDING ESMAP is a knowledge partnership supported by the World Bank and official donors from Belgium, Canada, Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, Switzerland, and the United Kingdom. ESMAP has also enjoyed the support of private donors as well as in-kind support from a number of partners in the energy and development community. FURTHER INFORMATION For further information on a copy of the ESMAP Annual Report or copies of project reports, please visit the ESMAP website: ESMAP can also be reached by at esmap@worldbank.org or by mail at: ESMAP c/o Energy and Water Department The World Bank Group 1818 H Street, NW Washington, D.C , U.S.A. Tel.: Fax:

3 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia March 2005 Energy Sector Management Assistance Program (ESMAP)

4 Copyright 2005 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C , U.S.A. All rights reserved Manufactured in the United States of America First printing March 2005 ESMAP Reports are published to communicate the results of ESMAP s work to the development community with the least possible delay. The typescript of the paper therefore has not been prepared in accordance with the procedures appropriate to formal documents. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The Boundaries, colors, denominations, other information shown on any map in this volume do not imply on the part of the World Bank Group any judgement on the legal status of any territory or the endorsement or acceptance of such boundaries. Papers in the ESMAP Technical Series are discussion documents, not final project reports. They are subject to the same copyrights as other ESMAP publications. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the ESMAP Manager at the address shown in the copyright notice above. ESMAP encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee.

5 Table of Contents Acknowledgments... v Abbreviations and Acronyms... vii Units of Measure... vii Preface... ix Introduction... 1 Country Profile... 1 Power System in Cambodia... 4 Power Sector Issues... 9 EAC Technical Assistance Project Basic Law and Regulations in the Power Sector The Electricity Authority of Cambodia Objectives of the Project Project Milestones Licensing Overall Performance Standards Complaint Handling Procedures Procedure for Application and Determination of Tariff Conclusion Annex 1: Households and Population in Provinces Annex 2: Details of Generation Licenses Details of Distribution Licenses Details of Consolidated License Consisting of Generation, National Transmission and Distribution Licenses Details of Consolidated License Consisting of Generation and Distribution Licenses Annex 3: Map Showing Locations of Licenses Annex 4: Decision on Revision of Procedures for Revising Licenses The Electricity Authority of Cambodia Decides New Contents to be Substituted in the Existing Procedures for Issuing, Revising, Suspending, Revoking, or Denying Licenses for Providing Electric Power Services (Revised 1) Annex 5: Regulations on Overall Performance Standards for Distribution Licensees and Retail Licensees in The Kingdom of Cambodia The Electricity Authority of Cambodia Decides Chapter Chapter Chapter Annex 6: Procedures for Filing Complaint to the EAC and for Resolution of Complaint by the EAC A. Provisions in the Electricity Law of the Kingdom of Cambodia B. Phases in the Resolution of Complaints by the EAC C. Procedure for Filing of Complaint and Notice to Defendant D. Reconciliation E. Investigation F. Preservation of Records and Documents iii

6 H. Appeals Annex 7: Procedures for Application and Determination of Tariff Provisions in the Electricity Law of the Kingdom of Cambodia Procedure for Annual Data Submission by Licensees and its Monitoring Appendix 1: Forms for Annual Data Submission by Larger Licensees Appendix 2: Forms for Annual Data Submission by Smaller Licensees Appendix 3: Forms for Submission by Larger Licensees with Tariff Application Appendix 4: Forms for Submission by Smaller Licensees with Tariff Application List of Tables Table 1.1: 1998 Census Data... 3 Table 3.1: Number of Licenses Issued (September 2004) Table 3.2: Licensed Generation Capacity Table 3.3: Generation Capacity by Type of Generation Table 3.4: Number of Licensees in Generating Capacity Bands Table 3.5: Duration of Licenses Table 3.6: Permitted Variation in the Voltage in Different Countries List of Figures Figure 1.1: Map of Cambodia... 2 Figure 1.2: Actual and Expected Production and Consumption of Power... 6 Figure 2.1: The EAC and MIME: Duties and Responsibilities Figure 2.2: The EAC Organization at Present iv

7 Acknowledgments This report was compiled by Ms. Rebecca C. Sekse of the World Bank and Badri Prasad Rekhani, Short-Term Consultant for the Energy Sector Management Assistance Program (ESMAP) financed activity P083199: Capacity Building for Electricity Authority of Cambodia. A particular debt of gratitude is owed to His Excellency Dr. Ty Norin, Chairman of the Electricity Authority of Cambodia (EAC), without this active cooperation it would not have been possible to prepare the deliverables under the project incorporated in this report. In addition, Excellencies Yak Bunmeng, First Vice-Chairman of EAC, and Dr. Ouch Thong Seng, Second Vice Chairman of EAC, actively participated in the internal discussions to finalize the deliverables and gave us the benefit of their many useful suggestions. We are also thankful to the officers of EAC, who assisted during field visits, in the collection of information from the licensees, and for providing valuable inputs during the discussions; to the officers of the Electricite du Cambodge; and to the many licensees and others who were generous in providing the required information about their businesses and providing valuable feed back during public consultations. Within the World Bank we are thankful to Chandrasekar Govindarajalu, Morten Larsen, and Ananda Covindassamy, who provided advice, comments, and input in the preparation of this report. We are most grateful to Teri Velilla for editorial suggestions and superb management of the final report, and to George A. Mokaya for his tremendous help in typing numerous drafts. Last but not least, we are greatly indebted to Mesdames Dominique Lallement and Junhui Wu for their outstanding support and guidance at different stages of the project. Special thanks to Nidhi Sachdeva for formatting the final report and to Marjorie K. Araya for coordinating the production process, both from ESMAP. v

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9 Abbreviations and Acronyms ADB EAC EDC ESMAP HFO HV IDA IPP LPG LV MIME MV PPA Asian Development Bank Electricity Authority of Cambodia Electricite du Cambodge Energy Sector Management Assistance Program Heavy fuel oil High voltage International Development Association Independent power producer Liquefied petroleum gas Low voltage Ministry of Industry, Mines, and Energy Medium voltage Power purchase agreement Units of Measure GWh kv kva kw kwh MW Gigawatt hours Kilovolt Kilovolt ampere Kilowatt Kilowatt hours Megawatt vii

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11 Preface The power sector in the Kingdom of Cambodia suffered heavily during the civil war ( ) and subsequent regime ( ). The infrastructure for electricity was almost destroyed not only in Phnom Penh City but also in other provincial towns and smaller towns. After the liberation of January 7, 1979, the government of Cambodia started to restore electricity infrastructure in Phnom Penh City and the main provincial towns of the country. Electricite du Cambodge (EDC) was reestablished with the task of supplying electricity to Phnom Penh. The supply of electricity in major provincial towns was entrusted to government enterprises at the provincial level. Private entrepreneurs provided supply services in other towns and villages. The sector continued to suffer from inadequate capacity, inefficient operation, and high tariff. The government initiated reform in the sector and passed a new law under which the Ministry of Industry, Mines, and Energy (MIME) will remain in charge of policy and planning only, a new regulatory body will be in control of regulating the sector, and private participation will be encouraged. It was also decided that the power supply in major provincial towns under the control of MIME will be gradually transferred to EDC or to private operators. Incorporation of EDC took place in In 2001 the Electricity Law was promulgated, and the Electricity Authority of Cambodia (EAC), the regulatory body for electricity in Cambodia, started functioning. The functions of EAC included licensing, tariff setting, and resolution of consumer complaints and enforcement of performance standards. The task before the EAC was immense. EAC requested technical assistance from the Energy Sector Management Assistance Program (ESMAP) to assist it in the issuing of licenses, determining performance standards, establishing procedures for resolution of complaints, and developing procedures for application and determination of tariffs. Mr. Badri Prasad Rekhani was appointed as a short-term consultant to provide the technical assistance to EAC. He worked on the project from June 2003 to September This report describes the achievements of EAC under the technical assistance project and includes the documents prepared by Mr. Rekhani. The report also describes the extent to which these documents were adopted by EAC. ix

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13 1 Introduction 1.1 The Electricity Authority of Cambodia (EAC) is in its nascent stage of development. However, it has undertaken initial steps toward increasing public awareness of electricity regulation and issuing licenses to larger scale generators and distributors in urban areas. EAC s next important task is to formalize the operations of small-scale private operators in the rural areas. The regulatory framework for rural electricity operations in the country has yet to be fully developed. Guidelines and procedures are currently being drafted by EAC, but they still have to be tested thus, gradual revisions can be anticipated and precedents must be established. 1.2 In addition, the scope of EAC s operations must be expanded to include, among other things, definitions of technical standards and procedures for determining tariff levels. In view of EAC s extensive work plan, the Energy Sector Management Assistance Program (ESMAP) has provided a grant toward the financing for a technical advisor to support EAC in these activities. Country Profile 1.3 The Kingdom of Cambodia, situated in the Lower Mekong River, is a land of paddies and forests dominated by the Mekong River and Tonle Sap. It is a member country of the Association of South East Asian Nations and is bordered by Thailand in the west, Vietnam in the east, and Laos in the north. 1.4 Cambodia s population is about 13,607,069, and its land area is approximately 181,040 sq km (land: 176,520 sq km; water: 4,520 sq km) with a coastline of 443 km. The country is divided administratively into 20 provinces (Banteay Mean Chey, Battambang, Kampong Cham, Kampong Chhnang, Kampong Spew, Kampong Thom, Kampot, Kandal, Koh Kong, Kratie, Mondol Kiri, Otdar Mean Chey, Pouthisat, Preah Vihear, Prey Veng, Ratanakir1, Siem Reap, Stoeng Treng, Svay Rieng, Takeo) and the four municipalities of Keb, Pailin, Phnom Penh (the capital city), and Sihanoukville. 1

14 2 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Figure 1.1: Map of Cambodia 1.5 Cambodia s economy is showing resilience in spite of the challenging international environment. Economic growth in 2001 was estimated at 6.3 percent, driven by a tourism sector and robust garment exports. In 2001, there was nearly zero inflation, and in 2002, the government made significant progress by producing strategies for moving forward in key socio-political areas, including education, health, governance, and nutrition. 1.6 As a post-conflict country with physical, social, human, and economic foundations for growth shattered and in need of restoration, Cambodia faces a formidable array of development challenges. Many parts of the country only recently became accessible as the security situation has eased. 1.7 The 1998 general population census of Cambodia was conducted in March Some of the data from this census are given in Table 1.1.

15 Introduction 3 Table 1.1: 1998 Census Data Subject Data Number of provinces/municipalities 24 Number of districts 183 Number of communes 1,609 Number of villages 13,406 Number of normal/regular households 2,162,086 Number of all households Total Urban Rural Percentage of households having electricity as main source of light Total Urban Rural Population Total Urban Rural 2,188, ,246 1,866, ,437,656 1,795,575 9,642, The number of households and population with urban/rural breakup for each province are given in Appendix Cambodia, measured by income or other social indicators, is among the poorest countries in the world, ranking 136 of 174 in the UN s Human Development Index. According to the recent National Poverty Reduction Strategy, 1 36 percent of the Cambodian population is in poverty, living on less than US$ per day, and 50.3 percent of children under age five are underweight. Moreover, it reported that half of Cambodia s poor would be lifted out of poverty if 6 percent growth could be sustained for eight years The Asian Development Bank (ADB), in its report on March 15, 2005, gave the following important socioeconomic development indices for Cambodia: 44 percent of the population have access to clean water 22 percent live in hygienic conditions 17 percent have access to electricity 0.2 percent surf the Internet 4 percent of roads are covered with asphalt 28 percent of the population is poor 10.3 million of its 13.4 million people live on US$2 a day Average annual income is US$306 Economic growth rate from 1994 to 2003 is 6.8 percent 1. Royal Government of Cambodia, National Poverty Reduction Strategy, February 2003.

16 4 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia 1.11 The industrial sectors prevailing in Cambodia can be divided into garments, tourism, construction and infrastructure, agribusiness, handicraft industries, and the nontourism service sector. In part owing to the small base, growth performance was impressive over the timeframe, in which total manufacturing output grew at 19.1 percent, driven by textile/garment at 64.3 percent, followed by electricity and water at 8 percent, and construction and mining at 3 percent each. 2 Growth is exceptionally dependent on foreign direct investment, which comprised more than 50 percent of fixed capital formation in Most of the existing energy sources in Cambodia are used by the 84 percent of the population who live in rural areas. Wood and charcoal are the only sources of energy for cooking. The exact amount of coal, petroleum, and gas available in Cambodia is not known. No specific studies have been conducted. However, at present some companies are exploring petroleum and gas offshore Potential of hydropower in Cambodia is high (more than 10,000 MW), but the development of hydropower has not been implemented mostly because of a lack of a prefeasibility study of the projects and investment capital At the moment, import of electricity from neighboring countries at low tariff rates is an appropriate choice to bridge the gap between demand and supply and to reduce the electricity tariff. This will increase the size of electricity market and will lead to largescale power development in Cambodia. 3 Power System in Cambodia 1.15 Electricity was first available in Cambodia in Until 1958, electricity was supplied by three private companies: Compagnie des Eaux Electricité, Union d Electricité de l Indochine, and Compagnie Franco-Khmer d Electricité Compagnie des Eaux Electricité supplied electricity to Phnom Penh and its surrounding areas. Union d Electricité de l Indochine supplied electricity to all provinces except Battambang. Battambang was supplied by Compagnie Franco-Khmer d Electricité In October 1958, the government took control of Compagnie des Eaux Electricité and Union d Electricité de l Indochine and established a new state-owned enterprise called Electricité du Cambodge (EDC). EDC supplied electricity to Phnom Penh and all provincial towns in the country except Battambang. Other smaller towns were supplied by private companies. In 1958, total installed generation capacity in Cambodia was approximately 30 MW, of which 16 MW was supplied by EDC and 14 MW by the other private companies During , the power sector in Cambodia experienced civil war ( ) and the Pol Pot regime ( ). Electricity facilities including generation, transmission, and distribution networks were nearly destroyed not only in Phnom Penh 2. MOP, Social and Economic Development Plan II. 3. EAC, Report on Power Sector of the Kingdom of Cambodia for the Year 2003.

17 Introduction 5 but also in other provincial and smaller towns. Most of the data and other information relating to this period on the electricity sector could not survive this period After the liberation on January 7, 1979, the government started to restore the electricity infrastructure in Phnom Penh and in the main provincial towns. The electricity supply was under the management of the Ministry of Industry, Mines, and Energy (MIME). MIME reestablished EDC with the task of supplying electricity to Phnom Penh and established small electricity companies to supply electricity to the provinces. Remarkable progress has been made in the power sector from 1991 until today, resulting in restoration and development of the electricity infrastructure and supply of electricity and reforms in the electric power sector Currently, Cambodia has one of the lowest electrification rates in Asia with only about 17 percent of its population connected to a power supply. Electricity costs are among the highest in the world. These two aspects are partly linked and both are partly the consequence of Cambodia s recent turbulent history The power system in Cambodia is different from most other countries. Most of the countries in the world have an interconnected grid consisting of large generating stations, high voltage (HV) lines and substations, and medium voltage (MV) and low voltage (LV) systems to take the power supply from the grid sub stations to the consumers. In addition, few countries have isolated systems to supply power to remote areas. In Cambodia, there is no national grid, and the supply to cities and towns is through a large number of isolated systems. Except for two hydropower stations, all generations use heavy fuel oil or diesel as fuel The principal entities in the electricity sector are MIME, the EAC, and the five categories of electricity providers that make up the power system. MIME is responsible for sector policy, strategy for rural electrification, negotiations for electricity trade agreements, and major investment projects, and, with the Ministry of Finance, is the sponsoring ministry for EDC. EAC is the power sector regulator responsible for licensing, approving tariffs and setting and enforcing performance standards and settling disputes The power system of Cambodia can be divided into five categories: EDC supply systems Supply from neighboring countries Isolated systems for other towns and villages Private independent power producers (IPPs) Captive supply

18 6 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia 1.24 The dependable total system capacity in 2003 was 109 MW. See Figure 1.2. Figure 1.2: Actual and Expected Production and Consumption of Power Production in 2002 (GWh) IPPs (309) 63% Kirirom Hydro (27) 5% Vietnam imports (0) 0% EdC (159) 32% Industry (31) 7% Governmen t (56) 13% Consumption in 2002 (GWh) Others (55) 13% Commercial inc.hotels (74) 18% Domestic (202) 49% Vietnam Imports (661) 57% Production in 2009 (GWh) Kirirom Hydro (53) 5% EdC (0) 0% IPPs (439) 38% Industry (88) 9% Governmen t (117) 12% Expected Consumption in 2009 (GWh) Others (121) 12% Commercial inc.hotels (231) Domestic 23% (439) 44% Electricite du Cambodge 1.25 EDC is the government-owned corporation and the largest supplier of electricity in Cambodia. EDC has been issued a consolidated license consisting of a generation license, national transmission license, and a distribution license. The EDC system is generally in good condition. It supplies electricity to Phnom Penh, provincial towns of Sihanoukville, Siem Reap, Battambang, Takeo, and Kampong Cham, and areas in the border districts of Pohnea Krek, Memot, Bavit, and Kampong Trach. The supply system to each of the cities and towns is isolated from each other In 1970, total installed generation capacity of EDC reached 61,125 kw, 77.5 percent of the total electricity production capacity in the entire country (78,805 kw). Electricity energy produced by EDC was 123,820,000 kwh in Phnom Penh and 12,230,000 kwh in other provincial towns. EDC s generation facilities and its share in

19 Introduction 7 energy produced consist of hydropower (12.7 percent), mainly the Kirirom 1 Hydropower Station; steam (23 percent), in the Chak Ang Re Krom Steam Turbine Power Station; diesel (64 percent); and gasoline (0.30 percent). In 1970 there was only one transmission line in Cambodia connecting Kirirom 1 Hydropower Station to Phnom Penh City through Prek Tnout. The Kirirom-Prek Tnout-Phnom Penh transmission line had a voltage rating of 110 kv, a length 120 km, and transmission capacity of approximately 50,000 kva The EDC system has the following features: The system in Phnom Penh was rehabilitated under a World Bank Credit. 4 EDC has a new 115 kv system interconnecting the three grid substation and the Kirirom 1 hydropower station, a 22 kv system for taking supply to different areas, and an LV system with Ariel Bunched Conductor to supply electricity to consumers. In Phnom Penh, EDC generates its own power and also purchases power from three IPPs (including the 12 MW Kirirom 1 hydropower station) to meet its demand. The available capacity is not enough to meet the demand during peak hours, and EDC resorts to load shedding. The system in Siem Reap and Sihanoukville was rehabilitated under an ADB loan 5 and consists of an MV (22 kv) and LV system in good condition. The system in Battambang and Takeo consists of MV (15 kv) and LV lines and has old as well as new facilities. The system in Takeo is being rehabilitated under a new cofinanced loan. 6 In Battambang, EDC gets electricity from leased generator sets. The system in Kampong Cham consists of MV (6.3 kv) and LV lines and has old as well as new facilities. In Kampong Cham, EDC purchases power from an IPP. The power in the border districts of Pohnea Krek, Memot, Bavit, and Kampong Trach is imported by EDC from Vietnam at a voltage of 22 kv or 15 kv. Supply from Neighboring Countries 1.28 Cambodia imports power from Vietnam and Thailand. Power from Vietnam is imported by EDC for Pohnea Krek, Memot, Bavit, and Kampong Trach Power from Thailand is imported at seven locations at 22 kv for Kamrieng, Phnom Preuk, Sampeou Loun, Phum Phsar Prum, Ochraov, Koh Kong, and Osmarch. Power is imported by four private operators under authorization from MIME and distribution licenses issued by EAC. Each system consists of MV (22 kv) and LV lines and is generally in good condition. 4. Phnom Penh Power Rehabilitation Project (Credit 2782) of September 28, 1995, which closed on June 30, ADB Provincial Power Supply Project (SF 1794). 6. International Development Association Rural Electrification and Transmission Project (credit KH), Global Environment Facility (TF ), ADB Power Distribution and Greater Mekong Sub- Region Transmission Project, and Nordic Development Fund.

20 8 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Isolated Systems for Other Towns and Villages 1.30 The supply systems of other towns and villages have its own generation and LV network. Very few towns have MV network of voltage of 22 kv or 15 kv or 6.3 kv. Most of the systems are in poor condition. Independent Power Producers 1.31 Although EDC is the dominant supplier of power, IPPs provide a substantial part of EDC's generation. As of the end of 2004, IPPs supplying to EDC account for about 48 percent of EDC's installed capacity and 60 percent of generation. IPPs also feature in EDC s future plans and have further power purchase agreement (PPA) contracts under discussion with potential IPPs and joint venture partners. The following IPPs are supplying power to EDC: Cambodia Utilities Pte Ltd., a Malaysian/Cambodian company operating a power plant since In accordance with the original power purchase agreement in 1994, EDC is obligated to purchase from Cambodia Utilities on a take or pay basis all of the power to be generated by the 37.1 MW diesel plant. The agreement has a term of 18 years, and the plant will be transferred to EDC at the end of the term of the project. Jupiter Power Cambodia Co. Ltd. a Canadian/Cambodian company that entered into a PPA with EDC in 2000 and agreed to finance, install, operate, and supply 15 MW of electric power for 36 months to meet the shortage in supply of electricity to Phnom Penh. EDC had the option to relocate some of the generator sets to provinces to meet the shortage of power in those areas. In 2002 and 2003, Jupiter and EDC agreed to several amendments and expansion of the existing PPA to include a new project, the C1 Expansion Project, where the minimum output was increased to 22 MW. China Electric Power Technology Import and Export Corp., a Chinese company that was granted by MIME the exclusive rights to develop, design, finance, rehabilitate, construct, own, operate, maintain, and manage the existing and newly constructed facilities of the Kirirom 1 hydropower plant with a capacity of 12 MW; to develop, design, finance, and construct transmission facilities and then transfer the plant to EDC after completion of commission; and to sell to EDC all generated electricity from Kirirom under a 30-year PPA EDC will start purchasing power in 2005 from the newly constructed 32 and 15 MW power plant of Khmer Electrical Power Co. Ltd., in accordance with a PPA signed in September Khmer Electrical Power will design, finance, build, own, operate, and maintain the facility with an initial generating capacity of 30 MW and deliver capacity to EDC. EDC is also expected to purchase an additional 5 MW of power from City Power Co., Ltd. Both IPPs are Cambodian companies.

21 Introduction 9 Captive Supply 1.33 Most of the industries, big hotels, and big establishments have their own generation to meet their own power requirement. Most of these are not connected to the public supply system. Power Sector Issues 1.34 The power sector is confronted by the following key issues and challenges: Paucity of energy resources: Cambodia s commercial fossil fuel resources such as coal, oil, and natural gas are limited and currently largely unexplored and unexploited. Its hydropower potential is vast, about 10,000 MW, but only about 15 MW has been developed. Under-exploitation of renewable energy resources: There is a growing awareness toward utilizing renewable energy resources, especially for the rural areas, where 85 percent of the population resides. Prospects for utilization of biomass and biogas are very promising, and significant progress has been made. Tapping of wind and solar energy resources is also being evaluated. Heavy dependence on fuel imports: All commercial fuels are imported in the form of liquefied petroleum gas (LPG), gasoline, diesel, and miscellaneous petroleum products (totaling about 1.2 million tons per annum), which heavily exposes Cambodia to international price fluctuations. Inefficient and underdeveloped electricity supplies: Cambodia s power supply facilities, heavily damaged during the war years, have started to recover admirably since the mid 1990s, under support from the International Development Association (IDA), ADB, Japan, the United States, and European countries. The 24 fragmented and isolated systems centered in provincial towns and cities are all reliant on expensive diesel power generation. Per capita electricity consumption is only about 48 kwh / year, and fewer than 15 percent of the households have access to electricity (urban 54 percent, rural 9 percent). Owing to the small size of generating units dependent on high cost imported oil, the lack of an HV transmission grid, and large losses in distribution, electricity costs are very high. Average grid-based tariff is 16 USc/kWh (range 9 23 kwh) and tariff in rural areas range from 30 to 90 USc/kWh. As a measure of poverty alleviation, the government plans to increase rural electricity coverage from about 10 percent today to 70 percent by This will pose a serious financial and institutional challenge. With power demand expected to grow at about 13 percent per year, it is critical that Cambodia looks for major sources of supply for meeting demand beyond Prospects for imports from Vietnam and Thailand are high and are being actively pursued, with support from IDA and ADB. Electricity sector reform: Cambodia has made considerable progress in reforming the power sector, particularly in passing the Electricity Law in 2001

22 10 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia and establishing EAC as a regulator. Further strengthening of the new sector structure and commercialization of EDC are priority needs. Contracting for electricity supplies through IPPs: Contracting of IPP generation has hitherto been on a negotiated basis and has resulted in high purchase tariffs and lack of transparency. This situation is now changing, and IPP supplies are now being contracted through a much more transparent competitive bidding process.

23 2 EAC Technical Assistance Project Basic Law and Regulations in the Power Sector 2.1 Cambodia established the Electricity Law to attract private investors to participate in the development of the power sector. The Electricity Law was adopted by the National Assembly on November 6, 2000, and was ratified by the senate on December 13, The law was issued on January 15, 2001, by the Constitutional Council, to be consistent with the constitution and was finally promulgated by Royal Decree No. NS/RKM/0201/03 dated February 2, 2001, by Preah Bath Samdech Preah Norodom Sihanouk, King of Cambodia. 2.2 The law covers all activities related to the supply, provision of services, and use of electricity and other associated activities of the power sector and establishes the principles for operation. It establishes favorable conditions for investments in and the commercial operation of the electric power industry including the principles for the protection of the rights of consumers and the promotion of private ownership of the facilities for providing electric power services to promote competition. 2.3 The enactment of the Electricity Law is a big leap forward in bringing reforms in the electricity sector. The law will encourage private investment in the power sector in a fair, just, and efficient manner for the benefit of the country. 2.4 The Electricity Law provides for the rights and obligations of the services providers as well as the consumers in establishing a fair condition in the business and in the use of electricity. It separates the setting and administering of government policies, strategies, and planning, which is the responsibility of MIME, from regulating, liaising, and arbitrating between the provision of services and the use of electricity, which is the responsibility of the EAC. The law provides that MIME shall transfer in an orderly manner the functions and duties defined in this law to the EAC as soon as the EAC is fully operational. 2.5 The EAC is a legal public entity and is an autonomous agency. The EAC ensures that the provision of services and the use of electricity will be performed efficiently, qualitatively, sustainably, and in a transparent manner. The EAC issues licenses to the electric power service providers, approves tariff rates and charges, issues regulations, procedures, rules, orders, and decisions, and has the right to resolve complaints and disputes. 11

24 12 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia 2.6 The EAC regulates the provision of services and the use of electricity. Regulations, orders, and decisions issued by the EAC are enforceable. The EAC may file complaints in the courts for any violation of the law or any violation of the regulations, orders, decisions, as well as licenses it has issued. 2.7 The differentiated roles of MIME and the EAC are presented in Figure 2.1. Figure 2.1: The EAC and MIME: Duties and Responsibilities Royal Government of Cambodia Ministry of Industry, Mines, and Energy - Energy policies - Electric power strategies - Power development plan - Technical, safety, environmental standards - Other duties Electricity Authority of Cambodia - Issues regulations - Issues licenses to electric power service providers - Reviews costs and approves tariffs - Resolves disputes - Regulates and imposes penalties Electric Power Suppliers Electric Power Users 2.8 Granting the right and autonomy to the EAC to regulate these services does not mean that the EAC should get involved in or manage the internal business of the electric power service providers. The law allows the EAC to advise or guide or order the supplier to modify or cease any activity that is against the public interest and to protect the interest of the consumers. 2.9 The EAC governs the relation between generators and transmitters, between generators and distributors, between transmitters and distributors, and between suppliers and consumers. These relate only to the cycle of delivery, receiving, and use of electricity and includes the conditions of delivery and receiving electric power services, the obligations and rights in delivery and receiving electric power services, the cost of electric power services that one party pays to the other party, and the quality of electric power services that one party provides to other parties.

25 EAC Technical Assistance Project 13 The Electricity Authority of Cambodia 2.10 The EAC consists of three members who will be designated and proposed by the prime minister and will be appointed by the Royal KRET. Presently, the regulators for the power sector are as follows: H.E. Dr. Ty Norin, Chairman H.E. Yak Bunmeng, First Vice Chairman H.E. Dr. Ouch Thong Seng, Second Vice Chairman 2.11 The EAC has a secretariat to assist in legislation, financial and pricing, electricity regulation, and administration and personnel. The secretariat will be headed by an executive director who is appointed by the EAC chairman after consulting with other members. (See figure 2.2 for a schematic of the EAC.) The EAC s highest authorities are the chairman of the EAC and the two vice chairmen. Under them is the secretariat. Figure 2.2: The EAC Organization at Present The Electricity Authority of Cambodia Consultants Secretariat Legislation Department Financial and Pricing Department Electricity Regulation Department Administration and Personnel Department 2.12 The Electricity Authority of Cambodia is an autonomous agency working for the interest of all electric power service providers and electricity users in the Kingdom and its expenditure for its operation is borne by all electric power service providers in the form of payment of the license fees. Article 27 of the 2.13 The EAC has an autonomous budget that comes from the license fees paid by applicants and by licensees as determined by the EAC. License fees charged by the EAC are within rates decided by the sub-decree of the government As of 2003, the license fees paid by licensees were as follows: Generation or power purchased from any other country: 1.60 riels per kwh of power generated or purchased Transmission: 0.60 riels per kwh of power transmitted

26 14 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Distribution and sale: 1.10 riels per kwh of power sold Retail: 0.50 riels per kwh of power sold Other services: 0.1 percent of the service fee 2.15 The duties of the EAC are given in Article 7 of the Electricity Law and include licensing, tariff, performance standards, complaints and disputes, issue of rules and regulations and procedures and monitoring of compliance The EAC started operations on September 3, Since its initial formation, the EAC has made strenuous efforts in preparing the basic framework required to fulfill its obligations and duties. Its priority remains in issuing the licenses to the electric power service providers so that all service providers are brought under the purview of the Electricity Law and issuing the codes, regulations, and procedures for regulating and monitoring the activities of electric power services and governing the relation between the delivery, receiving, and use of electricity. Article 7 of the Electricity Law The Electricity Authority of Cambodia shall have the following duties: (a) To issue, revise, suspend, revoke or deny the licenses for the provision of electric power services as provided in article 29 of this law (b) To approve tariff rates and charges and terms and conditions of electric power services of licensees, except where the authority considers those rates or charges and terms and conditions are established pursuant to a competitive, market-based process (c) To enforce regulations, procedures, and standards for investment programs by licensees (d) To review the financial activities and corporate organization structure of licensees to the extent that these activities and organization directly affect the operation of the power sector and the efficiency of electricity supply (e) To approve and enforce the performance standards for licensees (f) To evaluate and resolve consumer complaints and contract disputes involving licensees, to the extent that the complaints and disputes relate to the violation of the conditions of license (g) To approve and enforce a uniform system of accounts for all licensees (h) To prepare and publish reports of power sector and relevant information received from licensees for the benefit of the government and the public (i) To prescribe fees applicable to licensees (j) To determine the procedures for informing the public about its activities within its duties, in order to ensure that the Electricity Authority of Cambodia complies with the principle of transparency as set forth in Article 3 of this law (k) To issue rules and regulations and to make appropriate orders, and to issue temporary and permanent injunction for electric power services (l) To impose monetary penalty, disconnect power supply, suspend or revoke the license for the violations of this law, standards, and regulations of the Electricity Authority of Cambodia (m) To require the electric power service providers and the consumers to obey the rules relating to the national energy security, economic, environmental, and other government policies (n) To perform any other function incidental or consequential to any of the duties as describes above (o) To establish the terms and conditions of employment of the officers or employees including experts/advisors of Electricity Authority of Cambodia

27 EAC Technical Assistance Project In establishing the EAC as an independent regulatory body to license operating entities and establish electricity prices, the passage of the Electricity Law and the subsequent implementation steps has set the power sector on a path of reform that will lead to a largely unbundled sector with substantial private participation in generation and distribution of electricity On its part, the EAC has already begun to make an impact on sector operations. With the support of ESMAP, the EAC is currently issuing licenses, developing standard power purchase agreements, and licensing guidelines and policies, specifically for small rural electricity enterprises. This continued support to the EAC is instrumental in increasing its capacity and effectiveness in licensing and implementation of technical and pricing regulations The EAC s achievements measured against the deliverables under the ESMAPassisted project are provided in the following retrospective. Objectives of the Project 2.20 The overall objectives of the technical assistance project were to support the EAC in developing and implementing regulatory guidelines and licensing procedures for small-scale operators (less than 5 MW) in rural and peri-urban areas of Cambodia, assist initiating the process of licensing the operators in rural areas, assist in defining technical standards and tariff setting procedures, and facilitate the overall functioning and coordination of sector activities The project financed the assistance of a technical advisor to undertake the following specific tasks: Licensing: (a) Review the licensing process, streamline procedures, and report (through brief monthly reports) the adequacy of existing licensing procedures and suggest changes, if any are required, and (b) draft and produce, in collaboration with permanent EAC staff and in coordination with the consultants working under the Bank-financed Private Power Policy Framework, special licensing formats for the small-scale operators in rural areas. Performance standards: (a) Define and apply minimum technical performance standards based on the principle of light-handed regulation to cover at least the areas of voltage variation, interruptions to power supply, attending to complaints on bills and meters, and observation of requirements on new connections, (b) consider lessons learned from other countries that have gone through similar upgrading of technical standards, and (c) report progress on a monthly basis. Complaint handling procedure: Draft procedures for making a complaint to the EAC and resolving the complaint based on the principle of subsidiarity in order to resolve potential conflicts as close as possible to the affected stakeholders and wherever possible resolution at the lowest legal level.

28 16 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Procedures for tariff application and setting: Draft procedures to (a) obtain additional information from the applicant as necessary to evaluate tariff applications, (b) allow consumers and other interested parties to comment on the tariff application, and (c) define time frames for decisions. Rural Electrification Fund coordination: (a) Participate actively in piloting the fund through the process of licensing of prospective operators and (b) actively promote coordination of various technical assistance programs to the electricity sector At the close of the project in 2004, the Rural Electrification Fund has not yet started operations.

29 3 Project Milestones Licensing Licenses for Providing Electric Power Services 3.1 The EAC issues and regulates the following types of licenses: Generation license: Grants the right to generate electricity power from specifically fixed identified generation facilities. Transmission license: Grants the right to provide the transmission service. There are two types of transmission licenses, a national transmission license and special purpose transmission license. A national transmission license can be issued only to a state power transmission company, under government control. The company is granted the right to provide the transmission service for delivering the electric power to the distribution companies and bulk power consumers. A special purpose transmission license grants the right to construct, own, and operate specifically fixed identified transmission facilities. Distribution license: Grants the right to provide the electricity distribution services in a determined contiguous territory. Consolidated license: A license that may be the combination of some or all types of licenses. A consolidated license can be issued to EDC and to the isolated systems to grant the right to generate, transmit, dispatch, distribute, and sell electric power to consumers. Dispatch license: Grants the right to control manage and operate the dispatch facilities for facilitating the delivery and receiving the electricity from generation, transmission, and distribution systems. Bulk Sale license: Grants the right to buy electricity from any generation licensee or from the power systems of a neighboring country for sale to distribution licensees or to the large customers in one connected power system. Retail license: Grants the right to engage in the sale of electric power to consumers in a contiguous service territory. Subcontract license: Grants the right to supply electric power services according to the subcontract agreement with an existing licensee. 17

30 18 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia 3.2 In accordance with the Electricity Law, each license has two main elements: a decision to grant the right to provide the electric power service and the conditions of license. Critical Mass of Licensed Operators 3.3 The Terms of Reference for the technical assistance project required achieving a critical mass of licensed operators such that more than 100 operators will be licensed by the end of the assignment. The number of licenses issued by the EAC increased from 42 at the start of the assignment (June 2003) to 101 at the end of the assignment (September 2004). The type and number of licenses issued up to September 2004 is given in Table 3.1. Table 3.1: Number of Licenses Issued (September 2004) Type of license Number issued Generation license 10 Distribution license 8 Consolidated license consisting of generation, national 1 transmission, and distribution Consolidated license consisting of generation and distribution 82 Total Of the 10 generation licenses, 2 licenses expired at the end of the license period, and, hence, only 8 are valid. Tables 3.2 and 3.3 show the licensed generation capacity by type of license and by type of generation, respectively. Table 3.2: Licensed Generation Capacity Type of license Licensed generation capacity, kw Generation license 85,272 Consolidated license consisting of generation, 82,732 national, transmission, and distribution Consolidated license consisting of generation and 16,615 distribution Total 184,619 Table 3.3: Generation Capacity by Type of Generation Type of generation Capacity, kw Hydropower 12,000 Steam (burn heavy fuel oil) 18,000 Diesel/heavy fuel oil 154,619 Total 184, Four distribution licensees import power from Thailand, two licensees purchase power from generation licensees (IPP), one licensee purchases power from EDC, and one licensee purchases power from another distribution licensee, who imports power from Thailand. 3.6 Table 3.4 gives the number of licensees (a consolidated license consisting of generation and distribution licenses) for different generating capacity bands. The table

31 Project Milestones 19 shows that most of these licensees, who mostly operate in small towns and villages, have small businesses. Table 3.4: Number of Licensees in Generating Capacity Bands Generation capacity band, kw Number of licensees More than Even though the license issued to EDC includes the areas of Banteay Meanchey, Kampot, Kep, Prey Veng, Ratanakiri, Steung Treng, Svay Rieng, and Kampong Speu, EDC has not yet started operation in those areas. It is constructing facilities and is expected to start operation in The details of licenses valid in September 2004 are given in Appendix 2, and a map showing the location of the licensees is given in Appendix 3. The locations are marked by the license number. Issues in Licensing Simplification of Procedure for Issuing License 3.9 The EAC has approved the Procedures for Issuing, Revising, Suspending, Revoking, or Denying Licenses. 8 These procedures contain the format of application for license. There are two formats for application: existing service providers and new service providers. The procedures also contain separate bulletins detailing the information/documents to be furnished with the application for each type of license The procedures were examined under the technical assistance project for any possible simplification, particularly the formats for use by small operators. The procedures were also discussed with the EAC. It was concluded that the procedures are working well with applicants applying for grant of licenses. In view of this, the EAC decided that no modification is required to the formats. The formats are simple, easy to fill, and cover only the essential information However, the EAC felt that there was a need to simplify the Procedure for Revision of Licenses. The license application fee need not be paid for the revision of license, and public consultation need not be required for changing generation capacity up to 200 kw. Accordingly, a draft to replace the relevant part of the procedures relating to revision of license was prepared under the project and was submitted to the EAC. The draft was processed for approval through internal discussion and public consultation, and the amendment was approved in the 35th session of the EAC held on March 16, Appendix 4 gives the decision of the EAC on the amendment. Term of the Licenses 8. Available on the EAC web site

32 20 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia 3.12 Many of the consolidated licenses issued during the first half of 2003 were for a term of up to two years, which could be renewed further. Concerns were raised about its effect on the business of the licensee. The issue also came up during discussions held by the consultants for Private Power Policy for Cambodia. 9 The facilities of the applicants in most cases were not of a desired standard. This lead to poor levels of safety, inefficient operation, and higher tariffs The term of the license was determined by the EAC on the basis of the reports on the condition of the facilities that were submitted by the staff of the EAC after its field visit and the commitment of the applicant to improve the facilities and services. To induce the licensee to improve the condition of facility and give a better service to the consumers, the EAC was faced with the option to grant the license for a longer duration with a threat that the license will be revoked if the licensee failed to improve or to grant the license for a shorter duration and to reward the licensee with longer extensions if the licensee improves the facility. The EAC opted for the latter as suitable for Cambodian conditions Currently, a number of licensees are making additions to their generation capacity and improving facilities. As of September 2004, 12 licensees have increased their generation capacity while 2 licensees have improved their facilities and applied for extension of the term of their license. Nevertheless, the coming years will show how successful this strategy has been and how many licensees will have been able to improve their facilities in spite of the difficulties in arranging financing for these investments Table 3.5 shows the number of distribution and consolidated licenses issued for different durations as of September Overall Performance Standards Table 3.5: Duration of Licenses Duration, years Number of licenses Until revoked 2 Definition of Technical Standards 3.16 The Terms of Reference required the drafting of minimum technical performance standards covering voltage variation, interruptions to power supply, attending to complaints on bills and meters, and observation of requirements on new connections. Lessons learned from other countries were considered when drafting the standards. Localizing Technical Standards 9. Cambodia PPIAF: Private Power Policy Framework (P077529).

33 Project Milestones The standards should be suitable to Cambodian conditions, be realistic, and should ensure quality supply and service. To achieve this end, a field visit to three licensees and discussions with licensees and consumers elicited the following important points: The size of the conductor and length of LV lines is not always decided on the basis of load flowing through it and the voltage drop in the line. Consumers complain about the state of the LV line and accuracy of the meter. Incorrect meter reading, incorrect billing, or interruptions to supply are not main issues. Licensees suffer cash flow problems because many consumers do not pay their bills on time. In rural areas, disconnection of supply because of nonpayment of bills is rarely done. The licensee relies on convincing consumers. Explanatory Notes 3.18 The chairman of the EAC required an explanatory note to be circulated along with the draft of the Regulations on Overall Performance Standards during the internal discussion in the EAC and during the public discussions so that consumers and licensees could easily understand the provisions. The explanatory notes are given below. Performance Standard 3.19 Performance standards for a supplier define the standard or level of service that the licensee shall provide to its customers. The standard or level of service is defined to maintain transparency and secure the responsibility of the supplier to its customers in accordance with the Electricity Law, regulations, and technical standards There are two types of performance standards that are now implemented in many countries: Guaranteed performance standard: The standard or level of service fixed by regulators and guaranteed by the licensee to be provided to each customer. This means the licensee is responsible directly to each customer. The licensee must make a specified payment to the affected customer if the licensee fails to fulfill its obligation. Overall performance standard: Individual guarantees are not given to each customer. Rather, an overall standard or level of service is fixed by regulators for a licensee to implement. The customer in general has a right to expect service providers to deliver predetermined, minimum levels of service Currently, the EAC does not require fixing guaranteed performance standards to EDC and the private service providers because most of the distribution infrastructure (facilities) and management is not yet fully developed, data for evaluation of performance is not maintained and is, hence, not available, and licensees are not aware of their level of performance and scope of improvement.

34 22 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia 3.22 The EAC will need more time to collect the required data to be able to issue the guaranteed performance standard in line with developed countries. Initially, the aim of issuing an overall performance standard is to ensure that suppliers are aware of the importance of these service areas and to maintain records and data of performance. When the overall performance standard is properly and widely implemented, the EAC will review the performance data and then issue the guaranteed performance standard. Provisions Related to Performance Standards in the Electricity Law and Regulations Electricity Law 3.23 Article 5 of the Electricity Law provides that the EAC shall ensure that the licensees shall use the standards relating to technical operation, safety, and environment issued and published by MIME As per Article 7(e) of the Electricity Law, one of the duties of the EAC is to approve and enforce the performance standards for licensees. Regulations on General Conditions of Supply of Electricity 3.25 (Paragraph 98) The supplier shall maintain the quality of supply as per standards issued by MIME or norms fixed by the EAC in respect of the following: Variation in the voltage of supply Variation in the supply frequency Limitation on the duration of scheduled outage Time limit within which to restore supply in case of interruption 3.26 (Paragraph 102) The supplier is required to maintain minimum standard of performance for all consumers as fixed by the EAC. The EAC may fix standards of performance from time to time and may fix different standards of performance for different suppliers and different areas. The standards of performance fixed by the EAC shall at least include standards on the following key service areas: Attending to complaints on supply voltage Restoring power supply after interruptions caused by fault Attending to complaints on meters and meter reading Attending to complaints on bills Attending to complaints on disconnection and reconnection of the supply Giving new connections for small and medium consumers 3.27 (Paragraph 103) The supplier shall keep proper records about its performance in the service areas for which standards of performance have been fixed. The supplier shall submit the information on its performance during a year with reference to the standards of performance by March 31 of the following year. Services to be Covered by Overall Performance Standards

35 Project Milestones The services covered by the performance standards for the service providers are dependent on the need and concern of the consumers for that service and the availability of the data and information for evaluating performance. Unlike in developing countries, some services exist in industrialized countries that consumers consider necessary and important and for which standards are required to be fixed. Therefore, there are some services common in the standards of some countries but not in others For example, many industrialized countries have considered fixing performance standards on services such as to be on time for appointments, responding to all customers, and reliability ratings of electricity supply. But for some developing countries, these are not important and necessary. What matters to these electricity users are supplier s obligation to supply, quality of supply, and resolution of consumer complaints on the quality of supply, billing, and payment Performance standards for suppliers in Cambodia are: Maximum duration and notice for scheduled outage Restoration of supply in case of interruption Investigation into complaints on voltage Investigation into complaints on incorrect meter reading Replacement of defective meters Meter testing Response to consumers complaint on billing New connections Refund of deposit Reconnection after temporary disconnection Should There Be Different Standards for Urban and Rural Areas 3.31 Standards developed for urban areas, if followed blindly for rural areas, can be an excessive burden; that is, it may increase costs but have little benefit. Even so, ensuring safe and a quality power supply to rural consumers cannot be neglected Cambodia has a large number of service providers in the rural areas, each covering a small geographical area. Management is on site, enabling the utilities to make speedy decisions and then implement those decisions Thus, if initially the coverage of performance standards as proposed become the overall performance standards and not guaranteed performance standards, then it may not be necessary to have two different standards. In fixing the common overall performance standards for urban and rural areas, all issues involved were carefully considered in order that the standards are achievable for both urban and rural areas. International Experience and Proposed Overall Performance Standards

36 24 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Standard for Planned Outage 3.34 Electrical equipment and lines are prone to failure without proper maintenance. Therefore, regular and periodic maintenance has to be carried out to preserve the condition of the facilities to a detailed level to maintain quality supply to consumers The maintenance work is planned in advance. In general, to carry out any maintenance work the electric power facilities are required to be disconnected from the power source. If adequate reserve/alternate capacity is not available, the maintenance work may cause a discontinuity of electricity supply to consumers. The outage of supply owing to planned maintenance is called planned outage. Normally, the regulator should fix the conditions to avail the planned outage in such a way that minimum inconvenience is caused to consumers.

37 Project Milestones 25 Standards in Different Countries (As of The performance standard for Hong Kong specifically was for Other countries standards were current and valid in first part of 2003 when the report was prepared.) Thailand The supplier shall notify the consumers at least two days in advance by printed matter, radio, loudspeaker, or poster (guaranteed performance standard). The number of interruptions and the duration are fixed on the average supply reliability indices as follows: Metropolitan Electricity Authority System Average Interruption Frequency Index: Urban areas: 4.71 times/year/user Industrial areas: 5.60 times/year/user Rural areas: 8.47 times/year/user System Average Interruption Duration Index: Urban areas: min./year/user Industrial areas: min./year/user Rural areas: minutes/year/user (technical standard) Provincial Electricity Authority System Average Interruption Frequency Index: Urban areas (municipalities): times/year/user Industrial areas: 4.95 times/year/user Rural areas: times/year/user Average: times/year/user Average Interruption Duration Index: Urban areas (municipalities): 884 min./year/user Industrial areas: 324 min./year/user Rural areas: 1,615 min./year/user Average: 1,496 min./year/user (technical standard) Vietnam Notify planned outage to the electricity buyers at least five days before the time of the planned outage in the following forms: Sending written notices to organizations and individuals that use electricity for production activities and electricity users that are organizations and individuals that have exclusive transformer stations Publishing announcements in the mass media for organizations and individuals using electricity in their daily life (Decree on electricity activities and use) Hong Kong (Hong Kong Electric Co., Ltd.) Notify to customer at least seven days in advance. Reliability rating of electricity supply is better than percent. This means that in the case of maintenance the supply of electricity is not interrupted to the consumer (service standard). Orissa, India The licensee shall provide not less than 24 hours notice prior to a scheduled outage exceeding 30 minutes. Period of interruption owing to a scheduled outage shall be specified in the notice and shall not exceed 12 hours on any day. In each event the licensee shall ensure that supply is normally restored by 6:00 P.M. during summer and by 5:00 P.M. during winter (overall performance standard). Victoria, Australia Licensee shall give at least two working days notice of planned interruptions (this guarantee does not apply in emergency situations, where equipment or people are in danger and immediate action is required) (guaranteed performance standard). United Kingdom Northern Electric: Two working days notice is given and supplies will not be interrupted to the consumer for more than three hours on four occasions in a year (guaranteed performance standard). East Midlands Electricity: Five working days notice is given and there will not be more than three interruptions of three hours in a year (guaranteed performance standard). Office of Gas and Electricity Markets: Not less than two days notice is given by the distributor. The supply to a customer s premises shall not be interrupted for more than three periods (guaranteed performance standard).

38 26 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Proposed Standard for Cambodia The scheduled outage shall not be for a continuous period of more than 12 hours. In cases where the supply is not round the clock, the period of scheduled outage together with the period of non-supply in continuity with the scheduled outage, if any, shall not exceed 12 hours. In each case of scheduled outage of one hour or more, the supplier shall notify the consumers at least two days in advance by radio, television, newspaper, loudspeaker, poster, pamphlets, or any other suitable process. The supplier shall keep record of all scheduled outage. The record should show date and period of the scheduled outage, the details of the facility maintained, maintenance work carried out, and the date and method of notifying the consumers. Standards for Restoration of Supply in Case of Interruption 3.36 Interruption to power supply is the discontinuity of supply to consumers owing to the failure of a facility or because a facility is taken out of service in an emergency or to prevent damage to the facility or life or property. Such interruptions are unplanned, unexpected, and unanticipated. In cases of interruption to supply, the supplier shall restore the supply. Standards in Different Countries Thailand Metropolitan Electricity Authority: (a) Must be able to restore 60 percent of supply within 3 hours (overall standard); (b) power must be restored within 24 hours after being notified of the incidents, except in the cases of accidents, force majeures, natural disasters, or generator failures (guaranteed performance standard). Provincial Electricity Authority: (a) Must be able to restore 60 percent of supply within 4 hours (overall standard); (b) power must be restored within 24 hours after being notified of the incidents, except in the cases of accidents, force majeures, natural disasters, or generator failures (guaranteed performance standard). Vietnam Must be able to handle and solve the incident within 2 hours after receiving the electricity buyers report on power failure. When the incident cannot be overcome within the time limit, the electricity sellers have to promptly inform the electricity buyers thereof (decree on electricity activities and use). Hong Kong Average time for supply restoration after interruption is within 2 hours (service standard). Orissa, India The licensee shall restore the power supply to the consumer within 24 hours of receipt of the complaint except in case of transformer failures and failures of 11 kv feeder or terminal equipment, in which case it shall be within a maximum of seven days. The licensee shall restore supply within 3 hours of fault in 50 percent of the cases. This shall not apply to scheduled outages or outages under force majeure conditions. The licensee shall restore supply within 3 hours of fault in 80 percent of the cases. This shall not apply to scheduled outage and outages under force majeure conditions (overall performance standard). United Kingdom Northern Electric, East Midlands Electricity, and Office of Gas and Electricity Markets: The distributor shall restore supplies within 18 hours of being notified or of becoming aware of loss of supply (guaranteed performance standard). Proposed Standard for Cambodia

39 Project Milestones 27 In the event of interruption to supply, the supplier shall restore the supply in 60 percent of the cases within 6 hours after being notified of the incident. The supplier shall restore the supply in all cases within 24 hours after being notified of the incident. In cases where the normal supply is not round the clock, and the limiting period stated above ends in a period of no supply, and the consumer gets the next normal supply, it will be considered that the supply has been restored within the allowed time limit. The supplier shall keep a record to show the date and time when the interruption to supply was reported, the name of the consumer, the date and time of restoration of supply, and work done to restore the supply. Standards for Response of Suppliers in Case of Complaints on Voltage 3.37 See Table 3.6 for the permitted variation in the voltage in different countries. Table 3.6: Permitted Variation in the Voltage in Different Countries Utility/country Nominal, Minimum Maximum volts percent variation percent variation Metropolitan Normal condition Electricity Authority, Emergency condition Thailand Provincial Electricity Authority, Thailand Vietnam Normal condition Unstable grid Victoria, Australia India Determination of Variation in the Voltage of Supply in Cambodia 3.38 The voltage at the point of supply should not vary beyond the limits allowed in the standards issued by MIME. Until the standards are issued, the voltage at the point of supply should not vary beyond +10 percent or -10 percent of the declared voltage. Thailand Standards in Different Countries

40 28 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Metropolitan Electricity Authority: Able to resolve 60 percent of complaints within six months (overall performance standard). Investigation into complaints on voltage within 10 working days (guaranteed performance standard). Provincial Electricity Authority: Able to resolve 60 percent of complaints within six months (overall performance standard). Investigation into complaints on voltage within 15 working days (guaranteed performance standard). Orissa, India Within four working hours the licensee shall respond to consumer's complaint regarding variations of voltage and frequency of supply at the point of commencement of supply. Within 15 (fifteen) days of original complaint, the licensee shall either improve the quality of power supply or furnish a written reply to the consumer giving the causes of poor quality of power supply if it is beyond the licensee's control. Provided that the complaint regarding low voltages arises owing to inadequacy in the distribution system requiring up gradation of distribution lines, transformers, or installation of capacitors, the complaint shall be resolved within six months. The licensee shall bring voltage variations within limits of declared voltage within 15 working days of complaint in 60 percent of the case (overall performance standard). Victoria, Australia Will investigate and respond to quality of supply problems within 10 working days. If there is a risk to public or safety response will be immediate (guaranteed performance standard). United Kingdom Northern Electric: Will provide information within five working days. If a visit is required then must offer and make an appointment within seven working days (guaranteed performance standard). East Midlands Electricity: Explanation within five working days or visit within seven working days (guaranteed performance standard). Percentage of cases corrected within six months: 100 percent (overall performance standard). Office of Gas and Electricity Markets: The distributor shall within seven working days offer to visit the customer s premises to investigate the matter during a specified time (guaranteed performance standard). Proposed Standard for Cambodia In case of complaints relating to voltage at the point of supply the supplier shall contact the consumer and investigate the complaint in all cases within 10 working days of receipt or the complaint. The supplier shall resolve 60 percent of complaints on voltage within six months of receipt of the complaint. The complaint on voltage is considered resolved if the voltage at the point of supply is within the limits given in the technical standards issued by MIME. The supplier shall keep a record to show the date of receiving complaint on voltage, name of the consumer, nature of complaint, dates of investigating, and resolving the complaint and work done. Standards for Response of Suppliers to Complaints on Incorrect Meter Reading Standards in Different Countries Thailand Metropolitan Electricity Authority: Investigate or contact customers into complaints on meter reading and billing within 10 working days (guaranteed performance standard). Provincial Electricity Authority: Investigate and contact customers into complaints on meter reading and billing within 10 working days (guaranteed performance standard).

41 Project Milestones 29 Proposed Standard for Cambodia In case of complaints on incorrect meter reading the supplier shall investigate the complaint and inform the consumer the correct meter reading in all cases within 10 working days of receipt of the complaint. The supplier shall keep a record to show the date of receiving the complaint about incorrect meter reading, name of the consumer, nature of complaint, and date of notifying the consumer of the correct meter reading. Standards for Suppliers to Replace Defective Meters Determination of a Meter as Defective in Cambodia 3.39 Unless an exemption is granted by the EAC, the supplier shall not give supply without a proper meter. A meter is considered as defective if on testing the error of the meter is found to be beyond the permissible limit as given in the technical standards issued by MIME. Until the technical standards are issued by MIME, for small and medium consumers the permissible limit shall be (+/-) 3 percent at all loads in excess of one-tenth of full load and up to full load. For big and bulk consumers, the permissible limit shall be (+/-) 1 percent or as agreed and stated in the supply agreement. Standards in Different Countries Vietnam For meters lost or damaged not due to the electricity buyers faults, and placed outside the electricity buyers property management areas electricity sellers shall have to install other meters and re-supply electricity to the buyers within no more than seven days as from the date of making records confirming that the meters are lost or damaged (decree on electricity activities and use). Victoria, Australia If the test demonstrates that any metering equipment is defective, a distributor or a responsible person (as the case may be) must as soon as possible but no later than six working days after the test repair the metering equipment so that it meets the minimum standards of accuracy required under the applicable provisions of the NEC, the Metrology Procedure and this Code, or replace the metering equipment by installing new metering equipment (Electricity Customer Metering Code). Proposed Standard for Cambodia If a meter provided by the supplier is found to be defective, the supplier shall replace it within 30 days. The supplier shall keep a record to show the date when the meter was found to be defective, the name of the consumer, and the date of replacing with a good meter. Standards for Testing of Meters When Requested by the Consumer 3.40 Regulation 69 of the Regulations on General Conditions of Supply of Electricity provides that the supplier shall, upon request of the consumer and on payment of prescribed fees, test the meter serving the consumer. If the meter is to be removed for testing, a temporary meter shall be installed. The supplier shall serve due notice to the consumer of the time and place of the test and permit the consumer or authorized representative to witness the test. The supplier shall inform the consumer of the test results in writing. Upon testing, if the error of the meter is found to be beyond the

42 30 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia permissible limits, the meter shall be replaced and the fees paid by the consumer for testing the meter shall be refunded. The bills for the period the meter was defective shall be revised as per regulations in the General Conditions of Supply. Standards in Different Countries Vietnam When there is any doubt about the inaccuracy of meters, electricity buyers may request the electricity sellers to check it. Within three days at most after receiving the request from the electricity buyers, the electricity sellers shall have to inspect and fix it. The electricity sellers must pay all expenses for inspection and repair of meters (decree on electricity activities and use). United Kingdom Office of Gas and Electricity Markets: The supplier shall, within seven working days, offer to visit the domestic consumer s premises to investigate the matter during a specified time (guaranteed performance standard). Proposed Standard for Cambodia The supplier shall get the meter tested and inform the consumer of the test results in writing within 30 days of application by the consumer and payment of meter testing fees, if any. The supplier shall keep a record to show the date when the consumer requested to test the meter and made payment of the meter testing fees, the name of the consumer, the date of meter testing, and the date informing the test results in writing to the consumer. Standards for Response of Suppliers to Consumer s Complaints on Bills Standards in Different Countries Thailand Supplier shall investigate or contact customers into complaints on billing within 10 working days (guaranteed performance standard). Orissa, India The licensee shall reply to the consumer's complaint within seven working days of the receipt of the complaint. The licensee shall resolve consumer complaint regarding electricity bills within two months of receipt of complaint (overall performance standard). Proposed Standard for Cambodia In case of consumers complaints on non-receipt of bill or incorrect bill the suppliers shall convey its decision on those complaints in 40 percent of all cases within 15 days and in 90 percent of all cases within 30 days. The supplier shall keep a record to show the date of complaint about incorrect billing, the name of the consumer, the nature of complaint, and the date informing the decision to the consumer by the supplier. Standards for Response of Suppliers to Customers Application for New Connections

43 Project Milestones 31 Standards in Different Countries Thailand Metropolitan Electricity Authority: Time to connect new customers after payment is made in the case where a distribution system exists and not requiring new service connection (LV system): Consumption less than 15 (45) ampere, both 1 phase 2 lines and 3 phase 4 lines: Connected within 5 working days Consumption 30 (100) to 50 (150) ampere, both 1 phase, 2 lines and 3 phase, 4 lines: Connected within 10 working days Consumption from 200 to 400 ampere, 3 phase, 4 lines: Connected within 23 working days (guaranteed performance standard) Provincial Electricity Authority: Time to connect new customers after payment is made in the case where a distribution system exists and not requiring new service connection (LV system): Municipal areas: Consumption less than 30 ampere, 3 phases, connected within two working days; consumption more than 30 ampere, 3 phases connected within two working days Outside municipal areas: Consumption less than 30 ampere, 3 phases connected within five working days; consumption more than 30 ampere, 3 phases connected within five working days (guaranteed performance standard) Hong Kong Connection of supply not requiring inspection or after satisfactory inspection shall be within the next working day. Inspection appointment time for customer installation shall be within a two hour time frame (service standard). Orissa, India For 230 V/400 V supplies, the licensee shall deal with consumer's application for new connection as follows: Within three days of receipt of application, the licensee shall send three clear days notice to the applicant for the purpose of inspection of premises and setting the position of circuit breakers and meters. Charges for providing connection and security deposit required to be paid by applicant shall be advised within seven days. Within three days of receipt of completion report and the test report of the licensed contractor, the licensee will give three days notice to the applicant of the time and the date to inspect and test the installation. The licensee shall complete the inspection of the installation within a period of 10 days from the date of receipt of the test report of the licensed contractor. The licensee shall notify the applicant in writing of any defect noticed within seven days of inspection. After completion of all other formalities within seven days of approval of applicant's installation, the licensee shall commence supply of power to the applicant. The licensee shall process and provide new connections to consumers within 40 working days of date of application in 85 percent of the feasible cases (overall performance standard). Victoria, Australia Where electricity has been previously supplied to a home or business and the consumer contacts the licensee before 1:00 P.M. on a working day, the electricity will be reconnected within four hours, or as agreed. A visual safety inspection is required if electricity supply at the property is disconnected at the time of application. An after-hours fee is required to reconnect electricity on a weekend or public holiday. Where the electricity network already exists outside a home or business and an LV connection only is required, the electricity will be connected within three working days of the appropriate forms being completed and lodged, or as agreed. Where there are no electricity mains outside a property or additional reinforcement works are required, the licensee shall contact the consumer within 10 working days of the date of the application to advise the consumer on what is required to make supply available (guaranteed performance standard). United Kingdom Northern Electric: Will provide an estimate tariff within 5 working days and connecting of supply within 30 working days for domestic, 40 working days for other (guaranteed performance standard). East Midlands Electricity: Will provide an estimate tariff within 5 working days if no extension to system required and 15 working days if extension to system is required (guaranteed performance standard). For domestic, will connect supply within 30 working days for 100 percent of the time and for others, will connect supply within 40 working days 100 percent of the time (overall performance standard). Office of Gas and Electricity Markets: The distributor will provide an estimate tariff within 5 working days if no extension to system is required and 15 working days if extension to system is required (guaranteed performance standard).

44 32 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Proposed Standard for Cambodia For small or medium consumers, the supplier shall notify the applicant the amount of the connection fee and deposit to be paid by applicants in 80 percent of the cases within the time limit provided in the Regulations on General Conditions of Supply of Electricity. For small or medium consumers, the supplier shall connect the consumer within the time limit provided in the Regulations on General Conditions of Supply of Electricity in 80 percent of the cases, provided the consumer s installation is found satisfactory. The supplier shall keep a record to show the new connection to small and medium consumers, the name of the applicant, the date of application, the date informing the consumer of the amount of connection fee and deposit, the date of payment, and the date of supply. Standards for Refund of Deposit to Consumers Standards in Different Countries Thailand The payment guarantee deposit shall be refunded by the supplier to the consumer within 20 working days (guaranteed performance standard). Hong Kong The security deposit shall be returned by the supplier to the consumer within five working days after account closure (service standard). Proposed Standard for Cambodia The security deposit shall be returned by the supplier to the consumer within 15 days after the termination of the supply agreement and after adjustment of outstanding dues, if any, in 90 percent of the cases. For the other 10 percent of the cases, the deposit shall be returned within the next 15 days. The supplier shall keep a record to show the name of consumer, date of termination of supply agreement, and date of return of the security deposit to the consumer. Standard of Reconnection after Temporary Disconnection 3.41 Regulation 99 of the Regulations on General Conditions of Supply has permitted the supplier to make the temporary disconnection to the consumer by prior notice for these reasons: When the consumer refuses to allow entry to the premises or refuses to allow the supplier or an authorized representative to perform any act authorized under these regulations and the Electricity Law When the insulation resistance at the consumer's installation is so low as to prevent safe use of energy When the consumer fails to make payment of the electricity bill

45 Project Milestones 33 When the consumer neglects to pay the additional security deposit as per regulation 52 or any sum other than a charge for energy due from the consumer to the supplier in respect of supply of energy When the supplier inspects that the meter and finds that the meter is tampered with by the consumer or when the replacement of an obsolete or defective meter by the supplier is resisted by the consumer When the consumer uses any electrical appliances or uses energy supplied unduly or improperly that interferes with the system or efficient working of the supplier's system or to the supply of energy to any other consumer When a consumer assigns the supply agreement to any other consumer without the written permission of the supplier 3.42 Regulation 100 of the Regulations on General Conditions of Supply has permitted the supplier to make the temporary disconnection to the consumer without notice where the consumer's installation poses a danger to the health or safety of the consumer s or supplier's employees or to the public Regulation 101 of the Regulations on General Conditions of Supply define that supply disconnected for any of the above reasons shall not be restored until the cause of disconnection has been removed or remedied Standard that the supplier shall apply for restoration of supply when the reasons of temporary disconnection has been removed or remedied is called the Standard of Reconnection after Temporary Disconnection. Standards in Different Countries Thailand Metropolitan Electricity Authority: The supply shall be reconnected after the payment is made. Disconnection less than six months, 1 phase: connection within one working day; 3 phases: connection within 3 working days. Disconnection more than six months: connection within 20 working days (guaranteed performance standard) Provincial Electricity Authority: The supply shall be reconnected after the payment is made. Small consumers (consumption less than 30 kw) within municipal and outside municipal areas, connection within two working days. Large consumers (consumption of 30 kw and more), connection within five working days (guaranteed performance standard). Hong Kong Reconnection of supply after payment of outstanding charges: Same day as payment is received (service standard). Orissa, India The licensee shall reconnect supply if disconnected for nonpayment of electricity charges as billed in 80 percent of cases within 24 hours of proof of payment where period of disconnection of supply does not exceed two months (overall performance standard). Victoria, Australia Where electricity has been previously supplied to a home or business and the consumer contacts the licensee before 1:00 P.M. on a working day, the electricity will be reconnected within four hours, or as agreed. A visual safety inspection is required if electricity supply at the property is disconnected at the time of application. An after-hours fee is required to reconnect electricity on a weekend or public holiday (guaranteed performance standard).

46 34 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Proposed Standard for Cambodia The temporary disconnection could be due to reasons stated in Regulation 99 of the Regulations on General Conditions of Supply of Electricity. In cases of temporary disconnection owing to nonpayment, when the consumer gives proof of payment during working hours before 12:00 P.M. on a working day, the supplier shall reconnect the supply within six hours in 90 percent of the cases. When the consumer gives proof of payment at any other time, the supplier shall reconnect the supply within 24 hours in 90 percent of the cases. In cases of temporary disconnection owing to other reasons, the supplier shall reconnect the supply within 24 hours after verification of the removal of the cause of disconnection in 90 percent of the cases. The supplier shall keep a record to show the name of consumer, the date and time of receipt of information about removal of cause of disconnection, and the date and time of restoration of supply. Approved Overall Performance Standards 3.45 The draft of the Regulations on Overall Performance Standards was discussed in an EAC internal meeting and was put to public consultation and modified as required on the basis of comments received. It was approved by the EAC in its session No. 36 dated April 2, The decision of the EAC and the approved document is given in Appendix 5. Complaint Handling Procedures Provisions in the Electricity Law 3.46 As per the Electricity Law, the EAC has the following duties and functions: Evaluation and resolution of consumer complaints and contract disputes involving licensees Investigation and determination whether any person has violated or is about to violate any provision of this law or any implementing sub-decree, regulation, order, or judgment of the EAC The Electricity Law also provides that the sessions of the EAC for hearing of any complaint shall be public, the party against whom the complaint has been lodged has an opportunity to give evidence and opinion, and that the affected party has the right of appeal to the courts. Procedure Followed in the Courts 3.47 No law has been promulgated on civil procedures in recent times under the present constitution. The Kram dated February 8, 1993, on the organization of the courts deals with some aspects of judicial procedures like jurisdiction of different courts. Cambodian courts normally follow the guidelines of the Ministry of Justice and common practice that still prevails. Part of the Code of Civil Procedure of 1963 is still used by the

47 Project Milestones 35 courts. The steps being followed by the provincial and municipal courts in a civil case are: Lodging a complaint Reconciliation by the reconciling judge Registration of complaint and court fee Investigation by the inquiring judge Civil trial by the trial judge and the judgment Filing of an appeal against the judgment Procedures for Filing Complaint to the EAC and for Resolution of the Complaint by the EAC 3.48 The draft of the Complaint Handling Procedure has been based on the present practice being followed in the provincial and municipal courts with the additional provision of deliberations among members. As the EAC has three voting members judgment is based on majority vote Complaints by a consumer about voltage, interruption in supply, meter, meter reading, bills, disconnection, reconnection, or delay in receiving a new connection shall be first made to the supplier. If the consumer is not satisfied with the final response of the supplier or if the supplier is delayed in addressing the grievance beyond the time specified in the Regulations on Overall Performance Standards, the consumer can make complaint to the EAC. However, a complaint against a licensee for violation of any provisions of the Electricity Law, license conditions, or regulations issued by the EAC can be filed to the EAC directly by any interested person The draft was put to public consultation and modified as per the comments received from respondents including the Ministry of Justice. The procedures were approved in session No. 36 of the EAC on April 2, 2004, and were adopted by the EAC. The decision of the EAC and the procedures are given in Annex 6. Procedure for Application and Determination of Tariff 3.51 An initial draft of the Procedure for Application and Determination of Tariff was submitted on November 28, 2003, for discussion. Subsequently, the consultant under ADB funding started work on tariff-related matters including a draft sub-decree and draft regulations. The draft regulations provided for different levels of annual data submission by larger licensees and smaller licensees and setting the tariff of smaller licensees through a tariff table. This called for related changes in the procedures. Because the annual data submission was made a part of the tariff process in the draft regulations, it was required that the formats for submission of the data along with the formats for tariff application be included. These formats are included with the procedures as Appendices 1, 2, 3, and 4. of Annex 7

48 36 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia 3.52 The EAC desires that the procedures for application and determination of tariffs should be approved after the sub-decree for data submissions and tariff setting is approved by government and the related regulation is approved by the EAC. If the approved sub-decree and regulations are different than the draft sub-decree and draft regulations, then corresponding changes may have to be incorporated in the tariff procedures. The final draft of the procedures is given in Annex 7.

49 4 Conclusion 4.1 The autonomy of the EAC is a key requirement in attracting private capital and ensuring efficient development and operation of the power sector. The Electricity Law ensures achievement of this objective when it appointed a well-respected and capable power sector professional to act as regulator whose decisions could not be revoked by the executive branch, who will operate with budgetary autonomy, and whose office could attract qualified technical staff. 4.2 Experience in other countries have shown that, even under the protection of the law, regulatory bodies have suffered arbitrary political pressures that undermined their autonomy because of lack of commitment to respect regulatory authority and a strong office to support its daily operation. 4.3 The technical assistance project contributed to the success of regulatory reform by providing the necessary technical assistance and support that ensured that the EAC remain a technically competent and independent organization able to attract and retain qualified staff. 4.4 To sustain the benefits of this ESMAP assistance through the project, it is of utmost importance that the technical advisor actively promote coordination with numerous technical assistance programs in support of regulatory reform, rural electrification, power sector reform, among others, to ensure that the EAC continues to play a central regulatory role in the development of the electricity sector in Cambodia. 4.5 The implementation of this project has been successfully undertaken by the EAC. The technical advisor, in particular, performed the task as defined in the Terms of Reference very satisfactorily. 37

50

51 Annex 1 Households and Population in Provinces Regular households Total number of ouseholds Total population Province/ municipality Number Population Urban Rural Urban Rural Banteay Mean Chey 110, ,361 18,374 93,482 98, ,924 Bat Dambang 146, ,048 25, , , ,165 Kampong Cham 311,151 1,591,973 8, ,605 45,354 1,563,560 Kampong Chhnang 81, ,583 7,692 74,946 41, ,990 Kampong Speu 114, ,480 7, ,176 41, ,404 Kampong Thum 105, ,790 12,295 94,613 66, ,046 Kampot 104, ,215 6,060 98,933 33, ,279 Kandal 203,357 1,053,716 10, ,923 58,264 1,016,861 Kaoh Kong 24, ,575 5,400 19,564 29, ,777 Kracheh 48, ,990 14,791 34,535 79, ,052 Mandol Kiri 5,615 31,825 1,276 4,381 7,032 25,375 Phnom Penh 167, ,542 97,296 76, , ,649 Preah Vihear 21, ,748 4,133 17,358 21,580 97,681 Prey Veaeng 192, ,782 10, ,267 55, ,988 Pousat 67, ,655 10,856 57,379 57, ,922 Rotanak Kiri 16,646 93,507 3,193 13,565 16,999 77,244 Siem Reap 125, ,436 20, , , ,636 Krong Preah Sihanouk 27, ,921 28, ,690 0 Stueng Traeng 14,126 79,747 4,426 9,897 24,493 56,581 Svay Rieng 97, ,052 4,112 94,132 21, ,047 Takaev 153, ,614 7, ,773 39, ,982 Otdar Mean Chey 12,208 64,653 4,027 8,504 22,361 45,918 Krong Kaeb 5,282 28,028 5, ,660 0 Krong Pailin 4,000 20,749 4, ,906 0 Total 2,162,085 11,203, ,246 1,866,417 1,795,575 9,642,081 39

52

53 Annex 2 Details of Generation Licenses License number/ date issued Name of licensee Validity period Location of generation facility Fuel/licensed capacity PPA/ date 002 LD, Feb. 1, 2002 Cambodia Utilities Pte Ltd. Term of PPA EDC C2 Phnom Penh HFO/LDO, 37.1 MW EDC, Sept. 15, LD, March 29, 2002 Jupiter Power (Cambodia) Co., Ltd Term of respective PPAs EDC C1 Phnom Penh Kampong Chhnang power plant LDO, MW LDO, 0.75 MW EDC, March 21, 2000; May 7, 2002; May 21, 2003 Sovanny Electricity Development Co. Ltd, June 2, LD, March 29, 2002 Global Technological Support SDN BHD Term of interim PPA Kampong Cham power plant LDO, 4100 kva EDC, May 6, LD, April 1, 2002 Mr. Chea Sopha Term of General lease agreement Battambong power plant LDO, 4000 kva EDC, Sept. 27, LD, April 5, 2002 Cetic International Hydropower Development Co., Ltd. Term of PPA Kirirom Plateau, Koh Kong Province Hydro, 12 MW EDC, July 28, LD, Feb. 11, 2003 Global Power System Pte Ltd. Term of PPA Prey Veng power plant Diesel, 1230 kva MIME, Jan. 17, LD, May 6, 2004 Edward Energy Supply Co., Ltd. Term of PPA Road No.1, Phum Pea Nheak 1, Pursat Province HFO/LDO, 2350 kva Nareth Electricity Development Ltd., April 5, LD, Sept. 15, 2004 J.P.N. Cambodia International Co., Ltd Term of PPA Power plant in Phum 2, Takeo Province 1410 kva EDC, Aug. 28, 2004 Note: HFO, heavy fuel oil; light diesel oil; PPA, power purchase agreement. EDC, Electricite du Cambodge; MIME, Ministry of Industry, Mines, and Energy. 41

54 42 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Details of Distribution Licenses License number/ date Name of licensee Validity period, years PPA/date Area of distribution 008 LD, April 10, 2002 Franasie Import Export Co., Ltd. 10 Power purchase from Thailand District center of Kamrieng, Phnom Proeuk, and Sampeou Loun in Battambang Province 009 LD, May 27, 2002 M.S.P.Development Co., Ltd. 5 Power purchase from Thailand Areas along Road No.10 from Phum Phsar Prum to Sangkat Tuol Lavear, Pailin City, and to provide bulk sale service to surrounding Distribution Network at 22 kv 011 LD, Aug. 9, 2002 Anco Brothers Co., Ltd. 5 Power purchase from Thailand Ochraov District, Bantea Meachey Province and to provide bulk sale service to surrounding distribution networks through 22 kv line 014 LD, Nov. 22, 2002 Duty Free Shop Co., Ltd. 5 Power purchase from Thailand Koh Kong provincial town, Koh kong Province; Osmarch town, Khum Osmarch, Samrong District, Oddor Meanchey Province 050 LD, Sept. 9, 2003 Reeco Co. 15 EDC, June, 27, 2003 Area in Khum Prekthmey and Khum Chheu Teal, Keansvay District, Kandal Province 051 LD, Sept. 9, 2003 Sovanny Electricity Development Co., Ltd. 10 Jupiter Provincial MIME, June, 2, 1997 Kampongchnang Provincial town 052 LD, Sept. 9, 2003 Nareth Electricity Development Co., Ltd. 5 Jupiter Provincial MIME, May 8, 1996 Pursat Provincial town 089 LD, Feb. 9, 2004 Vanakpheap Development Co., Ltd 5 M.S.P. Development Co., Ltd., Sept. 29, 2003 Pailin City Note: PPA, Power purchase agreement; EDC, Electricite du Cambodge; MIME, Ministry of Industry, Mines, and Energy.

55 Annex 2: Details of Generation Licenses 43 Details of Consolidated License Consisting of Generation, National Transmission and Distribution Licenses License number/date Name of licensee Validity period Area of distribution Remarks 001 LD, Feb. 1, 2002 EDC Until terminated Phnom Penh Sihanoukville Siem Reap Battambang Takeo Kampong Cham Ponhea Krek and Memot district, Kampong Cham Province Power purchase from Vietnam Power No. 2 Bavit District, Svay Rieng Province Power purchase from Vietnam Power No. 2 Kompong Trach district town, Khum Oeuseysrok Khanglech and Khum Kompong Trach Khangkeut, Kompong Trach District, Kampot Province Power purchase from Vietnam Power No. 2 Banteay Meanchey Not yet operational Kampot and Kep Not yet operational Prey Veng Not yet operational Ratanakiri Not yet operational Steung Treng Not yet operational Svay Rieng Not yet operational Note: EDC, Electricite du Cambodge. Kampong Speu Not yet operational

56 44 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia Details of Consolidated License Consisting of Generation and Distribution Licenses License number/date 006 LD, April 1, LD, Aug. 9, LD, Sept. 6, LD, Nov. 22, LD, Nov. 22, LD, Nov. 29, LD, Nov. 29, LD, Dec. 12, LD, Dec, 30, LD, Dec. 30, LD, Feb. 11, LD, Feb. 11, LD, March 12, LD, March 12, 2003 Name of licensee Validity period, years Fuel /licensed capacity Mr. Huor Peng 5 Diesel, 600 kva Chilbo Industrial (Cambodia) Co., Ltd. 5 Diesel, 1.6 MW Mr. Mak Thorn 3 Diesel, 635 kva Mr. Srey Sokhom 2 Diesel, 100 kva Mr. Ke Kuyhuoy 2 Diesel, 100 kva Mrs. Bun Liv 5 Diesel, 2590 kva Mr. Ky Sophear 2 Diesel, 345 kva Mr. Te Kok Eng 2 Diesel, 275 kva Mr. Chhou Lay 2 Diesel, 107 kva Mr. Nov Sokha 2 Diesel, 560 kva Mr. Kong Phat 2 Diesel, 52.5 kw Mr. Khun Sambo 3 Diesel, 464 kva Mr. Chang Bunnaret 2 Diesel, 120 kva Mr. Kuy Suor 2 Diesel, 740 kva Area of distribution Kampong Thmar town consisting of Khum Balang Baray District and Khum Kampong Thmar, Sontuk District, Kampong Thom Province Capital of Kampong Thom Phsar Tonlap town, Khum Preah Bathchanchum, Kirivong District, Takeo Province Phsar Samrongyorng town, Khum Trapaingsab, Baty District, Takeo Province Phsar Kompongchrey town, districts of Trang and Koh Andet, Takeo Province Neak Loeung town (east of Mekong River) Peam Ro District, Prey Veng Province Phsar Snaypul town, Khum Roka, Pearang District, Prey Veng Province Khum Treal town, Baray District, Kamgpong Thom Province Phsar Preylvear town, Khum Preylvear, Preykabas District, Takeo Province Neak Loeung town (west of Mekong River), Leukdek District, Kandal Province Phum Thmarsor, Khum Korkpor, Boreycholsar District, Takeo Province Phsar Preytoteung town, Preychhor District, Kompong Cham Province Phsar Phaav town, Khum Phaav, Batheay District, Kamgpong Cham Province Phsar Suong town, Khum Suong, Tbongkhmum District, Kamgpong Cham Province

57 Annex 2: Details of Generation Licenses LD, March 12, LD, March 12, LD, March 13, 2003 Mr. Samreth Sothy 2 Diesel, 850 kva Mr. Sok Thy 2 Diesel, 860 kva Mr. Ly Bunthy 2 Diesel, 470 kva Sre Ambel District town, Koh Kong Province Phsar Vealrinh town, Khan Preynob Sihanoukville Sangkat Tumnub Rolok and Sangkat Kampenh, Khan Stoeung Hav,Sihanoukville 031 LD, March 13, LD, March 12, LD, April 9, LD, April 9, LD, April 9, LD, April 9, LD, March 20, LD March 20, LD, March 20, LD, March 26, LD, March 26, LD, March 26, LD, July, 1, LD, July 1, 2003 Mr. Chan Thun 5 Diesel, 575 kva Mr. Nhen Kong 2 Diesel, kva Mr. Chhuor Nguon 2 Diesel, 90 kw Mr. Toem Touch 2 Diesel, 115 kva Mrs. Chhuoy Phoeut 2 Diesel, 368 kva Mrs. Pauch Kim 5 Diesel, 215 kva Mr. Kry Bunthong 2 Diesel, 120 kva Mr. Khut Bunpech 2 Diesel, 295 kva Mr. Kim Chantara 2 Diesel, 145 kva Mr. Mak Heat 2 Diesel, kva Mr. Ty Sokorn 2 Diesel, 509 kw Mrs. Muy Kuan 2 Diesel, 240 kva Mr. Lay Se 2 Diesel, 440 kva Mr. Kong Puthy 2 Diesel, 320 kva Preah Vihear provincial town Phsar Tangkok town, Khum Soyong, Baray District, Kampong Thom Province Phsar Boeung Khna town, Khum Boeung Khna, Bakan District, Pursat Province Khum Trapaing Chong, Bakan District, Pursat Province Pourk District town, Siem Reap Province Kar-Andoeuk town, Khum Brasat, Kompong Trabek District, Prey Veng Province Phsar Rokakang town, Muk Kompul District, Kandal Province Phum Thnalbek, Khum Svayteab, Chamkaleu District, Kampong Cham Province Phsar Baray town, Khum Baray, Baray District, Kampong Thom Province Phsar Punley town, Khum Punley, Boribo District, Kampong Chnang Province Kampong Tralach District town, Kampong Chnang Province Phum Trapaing Ropao, Khum Prekthnot, Kampot District, Kampot Province Thmor Kol town, Thmor Kol District, Battambang Province Phsar Chhouk town, Chhouk District, Kampot Province

58 46 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia 045 LD, Aug. 18, LD, Aug. 18, LD, Aug. 18, LD Aug. 8, 2003 Mr. Keo Dara 2 Diesel, 85 kva Mr. Seng Sokun 2 Diesel, kva Mr. Mom Dara 2 Diesel, 100 kva Mr. Chhom Sophay 2 Diesel, 200 kva Phsar Kampong Popel, Khum Kampong Popel, Pearang District, Prey Veng Province Phsar Svay Antor town, Khum Svay Antor, Prey Veng District, Prey Veng Province Phsar Skun town, Khum Soteb, Chheung Prey District, Kampong Cham Province Phsar Domdek town, Sot Nikum District, Siem Reap Province 049 LD, Aug. 18, LD, Sept. 9, LD, Sept. 9, LD, Oct. 7, LD, Oct. 7, LD, Oct 7, LD, Oct. 7, LD, Oct. 7, LD, Nov. 20, LD, Nov. 20, LD, Nov. 20, LD, Nov. 20, 2003 Mrs. Khiev Nareth 2 Diesel, 415 kva Mr. Long Nget 2 Diesel, 115 kva Mrs. Ouch Por 2 Diesel, 70 kva Tambon Treuy Sla, Sa Ang District, Kandal Province Phsar Thnal Tatoeung town, Khum Damnak Ampil, Angsnoul District, Kandal Province and Khum Trapaing Krong, Somrong Trong District, Kampong Speu Province Phsar Sayva town, Prey Kabas district, Takeo Province Mr. Pak Hien 2 35 kva Psar Prey Sandek town, Khum Pry Sleuk, Trang District, TakeoProvince Sieng Khun kva Phsar Bos Knor town, Khum Bos Knor, ChamKar Leu District, Kg Cham Province Mrs. Heng Phirun 2 50 kva Phsar Stung Trang town, Khum Prek Kok, Stung Trang District, Kg Cham Province Mr. Lor Nguon 2 50 kva Phsar Kampong Kantuot town, Khum Bakour, Kandal Stung District, Kandal Province Electricity of Kratie Province Until revoked 200 kva Kratie provincial town Mr. Lim Sokhon 2 90 kva Khum Mesorchrey, Stung Trang District, Kg Cham Province Mr. Khoeun Sambath 2 95 kva Phsar Ang Snoul town, Khum Peuk, Ang Snoul District, Kandal Province Mr. Keb Borey kva Eastern Phsar Prek Kdam town, Khum Kohchen, Ponhealeu District, Kandal Province Mr. Ong Hok Sin kva Stong District town, Kg Thom Province

59 Annex 2: Details of Generation Licenses LD, Nov. 20, LD, Nov. 20, LD, Nov. 20, LD, Nov. 20, 2003 Mr. Ut Thy kva Phsar Tram Khnar town, Khum Chung rouk, Korng Pisey District, Kg Speu Province and Khum Sophy, Baty District, Takeo Province Mr. Chou Sroan 2 95 kva Phsar Mean town, Khum Mean and Khum Trapaing Preah, Prey Chhor District, Kg Cham Province Mr. Pean Sokhalay kva Phsar Prek Anh Chanh town, Khum Prek Anh Chanh, Muk Kampoul District, Kandal Province Mr. Sok Hoy 2 75 kva Phsar Trapaing Kraloeung town, Khum Kirivoan, Phnom Srouch District, Kg Speu Province 068 LD, Dec. 16, LD, Dec. 16, LD Dec. 16, LD Dec. 16, LD Dec. 16, LD Dec. 16, LD Dec. 16, LD Dec. 16, LD Dec. 17, LD Dec. 17, 2003 Mrs.Touch Mantha kva Khum Phnom Sampov, Banoan District, Battambang Province Mr. Nop Bin kva Rattanak Mondol District town, Battambang Province Mr. Bou Boeun kva Phum Poy Samrong, Khum Tapoung, Thmor Kol District, Battambang Province Mr. Heng Tray kva Southern Phsar Saang town, Khum Prek Koy, Saang District, Kandal Province Mr. Ya Sambat kva Phsar Svay Daun Keo town, Khum Svay Daun Keo, Bakan District, Pursat Province Mr. Treung San 3 80 kva Phsar Taing krasaing town, Khum Taing Krasaing, Santuk District, Kg Thom Province Mr. Mean Vanna kva Phsar Svay Teab town, Khum Svay Teab, Chamkar Leu District, Kg Cham Province Mr. Chhay Kim Huor kva Phsar Speu town, Khum Speu and Khum Chayo, ChamKar leu District, Kg Cham Province Mr. Quach Edward kva Phsar Oudong town, Khum Vaing Chas, O'Dong District, Kg Speu Province and Khum Vihealuong, Punnhea leu District, Kandal Province Mrs Chao Nuy 2 95 kva Phsar O-Snguot town, Khum O- Prasat, Mongkul borei District, Banteay MeanChey Province

60 48 Cambodia Power Sector: Technical Assistance for Capacity Building of the Electricity Authority of Cambodia 078 LD Dec. 17, LD Dec. 17, LD Dec. 17, LD Dec. 17, 2003 Mr. Vorn Yeang 2 50 kva Phsar Kotsat town, Khum Nimit and Khum Kob, O-chrov District, Banteay MeanChey Province Thon Thoeurn kva Phsar Phnom Toch town, Khum Phnom Toch, Mongkul Borey District, Banteay MeanChey Province Mr. Sok Vitith 2 70 kva Phsar Banteay Neang town, Khum Banteay Neang, Mongkul Borei District, Banteay MeanChey Province Mr. Muon Han kva Phsar Phnom Srok town, Khum Sras Chik, Phnom Srok District, Banteay Meanchey Province 082 LD Dec. 29, LD Dec. 29, LD Dec. 29, LD Dec. 29, LD Feb. 9, LD Feb. 9, LD Feb. 9, LD March 16, LD March 16, LD March 16, LD March 16, 2004 Mr. Ly Sok Kry kva Phsar Treng Trayeng town, Khum Treng Trayeng, Phnom Srouch District, Kg Speu Province Mr. Tun Yoeun 2 35 kva Phsar Thnal Chek town, Khum Kien Sangke and Khum Dam Dek, Sotnikom District, Siem Reap Province Mr. Mok Chin 2 30 kva Phsar Pangkasey town, Khum Khvao, Samrong District, Takeo Province, and Khum Tuol Ampil, Borseth District, Kampong Speu Province Mr. Soem Sokha 2 90 kva Phsar Thnalto teung town, Khum Chob, Tbongkmom District, Kg Cham Province. Mr. Koeung Rithy kva Northern Phsar Saang town, Saang District, Kandal Province Mr Haing Sovat Sothea 2 93 kva Thmor Puok District town, Banteay Meanchey Province Mr. Khun Sophal kVA Oreang Ov District town, Kampong Cham Province Mr. Ven Veasna kva Phum Bak Kheng and Phum Ktor, Sangkat Prek Lep, Khan Rusey Keo, Phnom Penh Mr. Sun Pov kva Khum Prek Khpob and Khum Prek Luong, Ek Phnom District, Battambang Province Mr. Som Visal 2 115kVA Phsar Samrong and Phsar Chouk town, Khum Samrong, Samrong District, Otdormeanchey Province Mr. Khut Chenda 7 70 kva Bantay Meas District town, Kampot Province

61 Annex 2: Details of Generation Licenses LD July 30, LD July 30, LD July 30, LD Sept.15, LD Sept.15, LD Sept.15, 2004 Mrs Chan Simoly 2 85 kva Phsar Prey Khmer town, Khum Andong Snay, and Khum Rolea Phear, Rolea Phear District, Kampong Chnang Province Mr. Chea Sareth 2 40 kva Phsar Pong Ro town, Khum Pong Ro and Svay Chrum, Rolea Phear District, Kampong Chnang Province Mr. Yin Ech 2 75 kw Angkor Chey District town, Kampot Province Mrs Kun Sivanny 3 85 kva Phsar Smachdeng town, Sangkat Ream, Khan Preynop, Sihanoukville Mr. Leng Mov kw Phar Bat Doeun, Udong District, Kampong Speu Province and Ponhea Leu District, Kandal Province Mrs. So Rinda 2 75 kva Phsar Thnalbort town, Khum Por Ankrang, Bor Seth District, Kampong Speu Province and Khum Beungtranh, Samrong District, Takeo Province

62

63 Annex 3 Map Showing Locations of Licenses 51